pure metgasco, page-25

This is Mr Lincoln Augustus, first second cousin of Holymagiman.

Just been looking back at what Metgasco has had to say about that Lions Way Pipeline, and this is what Metgasco has had to say about that pipeline:

In order to commercialise these gas resources, Metgasco needs to be able to deliver gas to the wholesale gas market in south-east Queensland. This requires building a pipeline to connect the Casino based gas project with large customers in south-east Queensland

"The pipeline is a core infrastructure investment which will enable the development and commercialisation of gas resources discovered in the Casino area.


The pipeline will also provide significant benefits to gas users in south-east Queensland.

Brisbane is the only capital city on the east coast of Australia that is supplied by a SINGLE gas pipeline.

The development of the pipeline will allow for supply of gas into southeast Queensland via an alternative delivery route and alternative supply basin. This will enhance the security of gas supply to Brisbane.

The new pipeline will also allow for an economic gas supply to proposed industrial and commercial developments adjacent the the proposed route.

The pipeline is approximately 145 km in length. It will be buried for its entire length, typically to depths of 90cm - 150cm.

In the IIR CSG 2010 Conference Brisbane, Metgasco stated that it owned 5,749 sq km of leases, ALL covering the highly prospective Walloon Coal Measures.

This is what PES previously had to say about the Walloon Coal Measures:

The Company (PES) is targeting the Walloon Coal Measures within permit ATP852P, which are the same coals currently being put into production at Berwyndale South and Argyle, (operated by Queensland Gas Company Ltd), Daandine, Kogan North and Tipton West (operated by Arrow Energy Ltd), and Lacerta (currently under development by BG/Queensland Gas Company Ltd, formerly Sunshine Gas Ltd).

In late 2008, PES certified 2P and 3P reserves of 394PJ and 1241PJ respectively on the Cameron Field in ATP852A, with a Contingent Resource of 784PJ.

Within the permit, the prospective coals are contained in the Jurassic Walloon Subgroup of the Surat Basin. Within the Walloon CSG Fairway the seams are known to contain commercial gas contents. The Company has now confirmed the coal seams are well developed in both the Juandah and Taroom Coal Measures.

"Net coal thickness was further confirmed to be in range from 15 to 30m.

This is what Metgasco has to say NOW about its Walloon Coal measures:

Net coal thickness 14 to 44 m, average 29m

Generally fully gas saturated

Mainly clean, 95% + methane and ethane, little or no impurities

Walloon Coal Measures have three main reservoirs, namely the Richmond seam, IJK seams and dry coals

ALL booked 2P and 3P reserves are in PEL 16.

2P reserves 381 Bcf = 397 PJ
3P reserves 2153 BCF = 2239 PJ

IJK reservoirs are the equivalent of the lower Taroom in the Surat Basin (refer to PES above)

And are LATERALLY VERY EXTENSIVE, average thickness 14 m,

With good gas content 527 scf/t, and a gas composition of 92 percent methane and 5 percent ethane

Seismic of the untested Ipswich and Nymboida show thick sequences, with the added possibility of shale gas.

So all that has been said so far for Metgasco ONLY RELATES TO PEL 16, which is about one seventh of Metgascos total acreage in the Clarence Morton Basin

And now we come to Bowerbird E2, which has intersected 42 m of gassy coal in the Walloon Coal Measures at 296 m.

If we consider the fact that it took 13 days to drill the 672m of Bowerbird E2, then it must have taken only about 5 days to reach the Walloon Coal Measures, and this fact has to be borne in mind when future wells are being considered.

So the coal measures are shallow enough to reach fairly easily and deep enough for the gases not to have escaped off. And that accounts for the gassy nature of the coal, which is all very good.

And the important fact is that Bowerbird is in PEL 13, and not in PEL 16. So it appears that a brand new set of additional reserve figures will be soon coming along to add on to Metgasco's already large 2P and 3P reserves that have been booked in PEL 16 to date.

So the family is just sitting back here in the sun, waiting for further results from both Bowerbird and Kingfisher, and it looks like the next few weeks are going to be, at worst, just good, and at best, most higjly entertaining from a number of very obvious aspects.

Blessing of the Lord

MLA